Century Enka Ltd. Company History and Annual Growth Details

YEAR EVENTS1965 - The Company was incorporated on 17th November, at Calcutta. It manufacture nylon and other man-made fibres and fabrics. Nylon yarn is marketed in India under the trade mark 'ENKALON'.

- The Company has entered into collaboration with AKU and Glazstoff. Another agreement was entered with N.V. Onderzoekings Institute Research, Arnhem (N.V. Research) for granting license to manufacture and sell nylon-6 textile and technical yarns and all other varieties thereof under their patent rights.

1967 - The Company issued 1,34,000 No. of equity shares to directors, etc. and 47,250 No. of equity shares to collaborators, 68,750 No. Equity and 50,000 Pref. shares offered to public in April 1967. Arrears: Rs 1,09,875.

1974 - In June, 1,25,000 bonus equity shares issued in prop. 1:2.

1975 - The Company received a letter of intent for the manufacture of 1,700 tonnes of engineering plastic polymer resins per annum.

1981 - A letter of intent was received to manufacture of 2,200 tonnes per annum of nylon industrial yarn and tyre cord. The electrical distribution system was also modernised to cut down distribution losses and for better flexibility.

- Letters of intent were in hand for the manufacture of 1,700 tonnes per annum of tyre cord fabrics and for expanding the capacity of nylon and polyester industrial yarns and tyre cord to the extent of 12,000 tonnes per annum.

1983 - Some of the financial institutions in India and FMO of Holand agreed to grant the necessary foreign exchange for importing the capital goods for the expansion of nylon yarn capacity from 4,000 to 6,000 tonnes per annum.

- The industrial licence for polyester filament yarn which was 1,500 tonnes per annum was re-endorsed as 6,450 tonnes per annum.

1985 - Permission was received to expand further the capacity of nylon plant from 6,000 to 12,000 tonnes per annum and that of polyester filament yarn from 6,450 to 15,000 tonnes per annum.

1986 - The Company obtained import licences and approval for basic engineering, for the expansion of the polyester plant. The Agreement in principle was reached with the collaborators, for manufacture of certain speciality chemicals, in technical collaboration with their group company Akzo Chemic.

- Approval was received for import of the State-of-the-art integrated process technology for production of nylon industrial yarn/tyre cord and this technology was incorporated in the planning and design of the final phase of expansion.

1989 - In order to augment the long term resources, the Company issued on private placement basis 14% non-convertible redeemable debentures (V Series) worth Rs 5 crores. These debentures are redeemable in three instalments commencing from 19th April, 1996.

1991 - Profitability was adversely affected due to increase in the cost of raw materials, hike in excise duty and unremunerative prices.

- The Company issued 10,00,000-17.5% secured redeemable non-convertible debentures of Rs 100 each (Series VI) on private placement basis to (i) Unit Trust of India; (ii) Life Insurance Corporation of India and (iii) General Insurance Corporation of India and its subsidiary companies.

- The third instalment of 2,500-15% redeemable cumulative Pref. shares redeemed on 31.12.1991.

- The diversification scheme for production of polyester industrial yarn was rescheduled due to various reasons including delay in shipments of equipment and changes in financial conditions.

1992 - The Company received necessary approvals for expansion of polyester filament yarn plant at Mahad.

- With the necessary approvals from Government having received, all capital jobs in progress, assets and liabilities, licences, agreements and commitments entered by the Company for the project for production of polymerisation initiators and alkyl esters were handed over to a new company, viz., Centak Chemicals, Ltd.

- The final instalment of 2,500-15% redeemable cumulative Pref. shares redeemed on 31.12.1992.

1994 - There was prolonged lock-out at Pune from 6th August. However, the lock out was lifted with effect from 1st November and an amicable settlement was arrived at.

- Polyester filament yarn off take was affected due to serious floods in Surat and outbreak of plague in September/October.

- Automobile sector emerged out of recession leading to increased demand for tyres, the lock-out denied the company of the advantage. Volume of business in engineering plastics also remained stagnant.

- Negotiations were concluded with foreign and domestic suppliers for major items of machinery and equipment for the scheme of expansion of polyester filament yarn at Mahad.

- The Company issued 10,00,000-13.5% Non-Convertible Debentures series (vii) of Rs 100 each on private placement basis with a bank. There are redeemable in 3 instalments commencing from 23rd December 1997.

1996 - Equipment for after treatment facilities and for supply of flat yarn on Jambo beams was commissioned. Expansion of Nylon tyreCord Fabric Capacity by 5400 TPA was being envisaged.

1997 - During the year Rajashree Polyfil Ltd., was amalgamated with the Company with effect from 1st April, to create the country's second largest synthetics textile major after Reliance Industries and Indo-Rama Synthetics. - 67,50,000 No. of equity shares of Rs 10 each of the company were issued and allotted to the shareholders of erstwhile Rajashree Polyfil Ltd. on 4th May, in the ratio of one equity share of the Company for every 20 equity shares of Rajashree Polyfil Ltd. Authorised capital increased. Equity capital sub-divided into equity shares of Rs 10 each.

- Century Enka holds 25 per cent stake in Rajashree, while 18 per cent is held by Swedish major, Akzo Nobel and the rest is with financial institutions and public.

- CEL will have an installed capacity to manufacture nearly 60,000 tpa of polyester yarn. The merged CEL will have facilities to manufacture both commodity yarns and speciality yarns, and also PET chips with diverse application.

1998 - Century Enka Ltd has cut back almost one-third of its production of polyester, owing to an over-supply situation in the market and severe pressure on margins. The B.K.Birla group company has shut down one batch processing unit of the three BPUs at its site in Maharashtra, thus slashing production to around 1,200 tonnes per month.

1999 - DSM Engineering Plastics BV has acquired the engineering plastics business of Century Enka Limited and established its subsidiary DSM Engineering Plastics (India) Pvt Ltd.

2000 - Crisil has assigned a P1+ rating to the certificate of deposit and CP programme of the company.

- Acordis Overseas Investment BV, one of the promoters of Century Enka Ltd, has decided to acquire 9.2 million equity shares Rs 10 each of the company.

2001 - Akzo Nobel Chemicals International BV has entered into agreements dated February 14 with the company and Century Tex and Inds Ltd. to acquire their entire shareholding of 9,30,1000 No. of Equity Shares in Centak Chemicals Ltd., subject to necessary approvals.

2003

-Pune Stock Exchange approves for the delisting of the company's Equity shares

2004

-Delists shares from Delhi Stock Exchange Association Limited

2005

- Polyester Partially Oriented Yarn (POY) capacity expansion at Bharuch Site by converting company's surplus Polyester Chips capacity has been materialised and the commercial production has started from April 19, 2005.

2007

- Century Enka Ltd has informed that Mr. G M Singhvi has been appointed as Whole - time Director of the Company with effect from 16th May, 2007, by the Board of Directors in its meeting held on 3rd May, 2007.